I dialled into the recent 'Continuation funds - ethical issues in private markets' webinar, hosted by CFA UK.
Would love to hear from others who attended to swap insights...
Some things I learned:
1. Historically, continuation vehicles (CVs) were used for PE and buyout, but its now increasingly employed in real estate and private credit.
2. 20% of PE exits that occurred last year happened via CVs.
3. CVs have a shorter term than typical PE (often 5 yr + 1-2 yr). They were typically used to house zombie funds / problem assets, but they are now housing some of the better assets. CVs tend to have fewer LPs than typical funds.
4. CVs adoption has increased as exits have not occurred as expected and LPs, who were counting on distributions, are now demanding liquidity. GPs have some incentives to create the CVs - for additional fee income and a way to create a track record (via the CV) for their future products.
5. Life insurers are ~30% of the private market buyer universe.
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Rajiv Subhas Gohil
Global Head of Distribution
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